Page 11 - GLNG Week 11 2022

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Sri Lanka’s Supreme Court dismisses legal

challenge against LNG-to-power project

PROJECTS & SRI Lanka’s Supreme Court on March 4 dis- the coast of Colombo. Under the terms of the
COMPANIES missed a legal challenge against a proposed agreement, the company would have gas supply
LNG-to-power project that is being developed rights to the Kerawalapitya power complex and
by New Fortress Energy (NFE). The company would initially provide Sri Lanka with an esti-
subsequently reiterated its commitment to the mated 1.2mn (4.5mn litres) gallons per day of
project in a March 8 statement. LNG. This would be used to supply both the cur-
“Having considered the merits of all the fun- rently operational 310-MW Yugadanavi power
damental rights petitions filed seeking to halt plant and the 350-MW Sobadanavi power plant,
NFE’s development of natural gas power solu- which is due to enter service in 2023.
tions in Sri Lanka, the court fully dismissed the Sri Lanka’s government has long been calling
petitions without further hearing,” NFE said. for gas to make up at least one-third of the coun-
“We are pleased that the court has dismissed try’s energy mix by 2030, up from zero today.
these petitions, as NFE can now proceed with However, despite the government also trying to
our plans to deliver cleaner fuels and more relia- revive interest in developing untapped offshore
ble, affordable power to Sri Lanka,” stated NFE’s gas deposits, the only way of adding gas to Sri
chairman and CEO, Wes Edens. Lanka’s energy mix currently is via the import of
According to the statement, the company LNG. Various plans to import LNG have failed
struck a definitive agreement with the govern- to gain traction in recent years, with complex
ment of Sri Lanka in September 2021, paving bureaucracy and political volatility acting as
the way for NFE to build an LNG terminal off roadblocks to new projects.™

McDermott completes subsea work at

Bayu-Undan as Santos kicks off CCS FEED

PROJECTS & MCDERMOTT International announced on execution of its contract. Recovery and reuse of
COMPANIES March 10 that it had completed subsea work existing flowlines was a “significant factor” in
under its engineering, procurement, construc- enabling the work to be completed on schedule,
tion and installation (EPCI) contract, awarded within nine months of being awarded the con-
by Australia’s Santos for the Bayu-Undan tract, it added.
project. Meanwhile, Santos has entered the front-
The Bayu-Undan field is one of Timor- end engineering and design (FEED) phase of
Leste’s largest gas fields, located in the Timor Sea a proposed carbon capture and storage (CCS)
around 200 km off the country’s south-east coast project at Bayu-Undan. The project would have
Bayu-Undan provides and roughly 500 km off the north-west coast of the capacity to store up to 10mn tonnes per year
feedstock gas to the Darwin, Australia. It supplies feedstock gas to (tpy) of carbon dioxide (CO2) and would also
Darwin LNG project in the Darwin LNG terminal, which is also oper- serve Darwin LNG.
Australia. ated by Santos. Santos said in a March 9 statement that the
The work McDermott was carrying out was FEED work would include engineering and
for the infill well Phase 3C project at the field. design for additional CO2 processing capacity
Work on Phase 3C began in May 2021 and ended at Darwin LNG as well as the repurposing of the
in December, McDermott said. The company’s Bayu-Undan facilities for carbon sequestration
scope of work involved the tieback of a single operations after gas production from the field
in-field well to existing facilities, re-using exist- ends.
ing flexible flowline, with a new umbilical and The company believes the CCS project has
certain infrastructure. the potential to be one of the largest in the world,
McDermott said recovery of existing flexible and has talked up the scheme’s potential to cre-
flowlines, flushing to clear hydrocarbons, re-lay- ate jobs and provide a new revenue stream for
ing and a tieback from a new in-field well to the Timor-Leste once Bayu-Undan is no longer pro-
existing Bayu-Undan facility were all key to the ducing gas.™

Week 11 18•March•2022 www. NEWSBASE .com P11